Supplemental Equity and Comprehensive Income Information

3 Months Ended

Mar. 31, 2020

Supplemental Equity and Comprehensive Income Information

Supplemental Equity and Comprehensive Income Information

NOTE 7. Supplemental Equity and Comprehensive Income Information

Cash dividends declared and paid totaled $1.47 and $1.44 per share for the first quarter 2020 and 2019, respectively.

Consolidated Changes in Equity

Three months ended March 31, 2020

			3M Company Shareholders
			Common						Accumulated
			Stock and						Other
			Additional						Comprehensive		Non-
			Paid-in		Retained		Treasury		Income		controlling
(Millions)	Total		Capital		Earnings		Stock		(Loss)		Interest
Balance at December 31, 2019	$	10,126	$	5,916	$	42,135	$	(29,849)	$	(8,139)	$	63
Net income		1,294				1,292						2
Other comprehensive income (loss), net of tax:
Cumulative translation adjustment		(444)								(441)		(3)
Defined benefit pension and post-retirement plans adjustment		119								119		—
Cash flow hedging instruments		47								47		—
Total other comprehensive income (loss), net of tax		(278)
Dividends declared		(847)				(847)
Stock-based compensation		117		117
Reacquired stock		(356)						(356)
Issuances pursuant to stock option and benefit plans		153				(235)		388
Balance at March 31, 2020	$	10,209	$	6,033	$	42,345	$	(29,817)	$	(8,414)	$	62

Three months ended March 31, 2019

			3M Company Shareholders
			Common						Accumulated
			Stock and						Other
			Additional						Comprehensive		Non-
			Paid-in		Retained		Treasury		Income		controlling
(Millions)	Total		Capital		Earnings		Stock		(Loss)		Interest
Balance at December 31, 2018	$	9,848	$	5,652	$	40,636	$	(29,626)	$	(6,866)	$	52
Impact of adoption of ASU No. 2018-02*		—				853				(853)
Impact of adoption of ASU No. 2016-02*		14				14
Net income		893				891						2
Other comprehensive income (loss), net of tax:
Cumulative translation adjustment		77								77		—
Defined benefit pension and post-retirement plans adjustment		84								84		—
Cash flow hedging instruments		6								6		—
Total other comprehensive income (loss), net of tax		167
Dividends declared		(830)				(830)
Stock-based compensation		112		112
Reacquired stock		(666)						(666)
Issuances pursuant to stock option and benefit plans		219				(405)		624
Balance at March 31, 2019	$	9,757	$	5,764	$	41,159	$	(29,668)	$	(7,552)	$	54

*See Note 1 in 3M’s 2019 Annual Report on Form 10-K.

Changes in Accumulated Other Comprehensive Income (Loss) Attributable to 3M by Component

Three months ended March 31, 2020

							Total
			Defined Benefit		Cash Flow		Accumulated
			Pension and		Hedging		Other
	Cumulative		Postretirement		Instruments,		Comprehensive
	Translation		Plans		Unrealized		Income
(Millions)	Adjustment		Adjustment		Gain (Loss)		(Loss)
Balance at December 31, 2019, net of tax:	$	(1,899)	$	(6,209)	$	(31)	$	(8,139)
Other comprehensive income (loss), before tax:
Amounts before reclassifications		(439)		—		77		(362)
Amounts reclassified out		—		164		(16)		148
Total other comprehensive income (loss), before tax		(439)		164		61		(214)
Tax effect		(2)		(45)		(14)		(61)
Total other comprehensive income (loss), net of tax		(441)		119		47		(275)
Balance at March 31, 2020, net of tax:	$	(2,340)	$	(6,090)	$	16	$	(8,414)

Three months ended March 31, 2019

							Total
			Defined Benefit		Cash Flow		Accumulated
			Pension and		Hedging		Other
	Cumulative		Postretirement		Instruments,		Comprehensive
	Translation		Plans		Unrealized		Income
(Millions)	Adjustment		Adjustment		Gain (Loss)		(Loss)
Balance at December 31, 2018, net of tax:	$	(2,098)	$	(4,832)	$	64	$	(6,866)
Impact of adoption of ASU No. 2018-02*		(13)		(817)		(23)		(853)
Other comprehensive income (loss), before tax:
Amounts before reclassifications		103		—		13		116
Amounts reclassified out		—		104		(7)		97
Total other comprehensive income (loss), before tax		103		104		6		213
Tax effect		(26)		(20)		—		(46)
Total other comprehensive income (loss), net of tax		77		84		6		167
Balance at March 31, 2019, net of tax:	$	(2,034)	$	(5,565)	$	47	$	(7,552)

*See Note 1 in 3M’s 2019 Annual Report on Form 10-K.

Income taxes are not provided for foreign translation relating to permanent investments in international subsidiaries, but tax effects within cumulative translation does include impacts from items such as net investment hedge transactions. Reclassification adjustments are made to avoid double counting in comprehensive income items that are subsequently recorded as part of net income.

Reclassifications out of Accumulated Other Comprehensive Income Attributable to 3M

	Amount Reclassified from
Details about Accumulated Other	Accumulated Other Comprehensive Income
Comprehensive Income Components	Three months ended March 31,				Location on Income
(Millions)	2020		2019		Statement
Defined benefit pension and postretirement plans adjustments
Gains (losses) associated with defined benefit pension and postretirement plans amortization
Transition asset	$	(1)	$	—	See Note 11
Prior service benefit		15		16	See Note 11
Net actuarial loss		(177)		(120)	See Note 11
Curtailments/Settlements		(1)		—	See Note 11
Total before tax		(164)		(104)
Tax effect		45		20	Provision for income taxes
Net of tax	$	(119)	$	(84)
Cash flow hedging instruments gains (losses)
Foreign currency forward/option contracts	$	18	$	7	Cost of sales
Interest rate contracts		(2)		—	Interest expense
Total before tax		16		7
Tax effect		(4)		(1)	Provision for income taxes
Net of tax	$	12	$	6
Total reclassifications for the period, net of tax	$	(107)	$	(78)